It's been time delayed for a while now. If you go into settings you can select ask for password immediately or ask for password after 15 mins. I forget where it's located. Maybe restrictions or in the App Store section. Hell it might even be general. It's there somewhere lol
I hear where you're coming from as far as a parent is concerned, but as the owner of the phone, I should be able to select if and when it asks for a password. I know I can install password pilot. I go back and forth on keeping it installed.
The only reason I brought this topic up was because I thought without a doubt I remember reading that apple was removing the password for free apps because they're free and therefore no harm done whereas paid apps are linked to a credit card and can run up a tab.